CG31680 - Death and Personal Representatives: Variation of the devolution of an estate: Instruments of variation: liaison with HMRC - Trusts and Estates IHT: local action

Where you have examined the instrument of variation and it apparently satisfies all the conditions in CG31650 you should enquire of the parties or their agents whether it has been seen by HMRC - Trusts and Estates IHT and if so with what result.

• If you are told that it has been `accepted’ for the purposes of Inheritance Tax, you can regard it as valid for the purposes of Capital Gains Tax. See CG31630.
• If you are told that it has been `not commented upon’ for the purposes of Inheritance Tax, then, unless you have any doubts you can regard it as valid for the purposes of Capital Gains Tax. See CG31630.
• If you are told that it is `still under consideration’ for the purposes of Inheritance Tax you should ask the agents to let you have details of HMRC - Trusts and Estates IHT’s reply in due course. You should take no further action on any CGT consequences for the time being. When those details are supplied you should proceed as above or below.
• If you are told that it has been `rejected’ by HMRC - Trusts and Estates IHT, you should ask that office why and proceed on the basis of their conclusions and deal with the self assessment of any persons concerned accordingly, or advise their offices of the position as appropriate.
• If the instrument gives notice only for s.62(6) purposes you should accept the deed and Section 62 notice as valid for CGT purposes provided you have no reason to suspect it is otherwise invalid.